The Strategic Advantage of Multigenerational Wealth Planning

In the competitive financial advisory landscape and ongoing quest for new clients, advisors often miss an obvious opportunity – the children and grandchildren of their existing clientele. If an advisor can serve multiple generations of a client’s family, he or she can avoid the dreaded high attrition rate that most advisory firms experience when a family patriarch or matriarch dies and leaves the estate to their heirs.

Whether a surviving spouse or children, heirs more often than not leave the advisor who managed the deceased's financial affairs when a preexisting relationship had not been formed. This advisor oversight highlights a natural strategy to engage in multigenerational wealth planning.

According to findings from Cerulli Associates, more than 70% of heirs are apt to switch financial advisors following the inheritance of their parents' assets. This trend poses a significant challenge for advisory firms, as nearly $70 trillion in wealth is expected to transition to the next generation and to charities by 2042. Understanding and addressing this dynamic is crucial for any wealth advisory firm aiming to sustain and grow its clientele base.

Intentional Connections Crucial

In keeping with our commitment to deep and lasting relationships, our client roster includes numerous third- and fourth-generation families. Over the years, we have refined an approach to building intentional connections around each family’s shared values. This integrates the financial vision of our clients' heirs with those of the family as a whole. It also increases our ability to retain family assets over generations.

Our approach is proactive and adaptive. Because we recognize the needs and aspirations of each family member, we can introduce younger generations to the financial planning process, fostering a sense of cohesion and shared purpose.

In turn, their parents take comfort in knowing we are on hand to provide intergenerational continuity. This approach ensures that our client relationships last. Further, it empowers heirs to manage their inheritances with confidence.